Midterms Lessons PDF

CHAPTER 1 Quality Competitiveness & Customers In the competitive landscape of today's business world, organizations strive to achieve success by focus on quality, competitiveness and customer satisfaction. These 3 elements are interconnected and play a crucial role in shaping a company's reputatio...

CHAPTER 1 Quality Competitiveness & Customers In the competitive landscape of today's business world, organizations strive to achieve success by focus on quality, competitiveness and customer satisfaction. These 3 elements are interconnected and play a crucial role in shaping a company's reputation and market standing. Reputation & Competitive Weapons An organization's reputation is a valuable asset that directly impacts its competitiveness. This reputation is built upon a foundation of quality, reliability, delivery and price which act as powerful competitive weapons. 1. Quality - is often considered the most important competitive weapon because it encompasses the product or service's ability to meet or exceed customer expectation. High quality offerings differentiate a company from its competitors and build trust with consumers. 2. Reliability – refers to the product’s or services consistency in performing as expected over time. A reliable product or service reduces the risk of failure or dissatisfaction, enhancing the brand’s reputation. 3. Delivery – Timely delivery is crucial in meeting customer expectations. Delays can lead to dissatisfaction and damage a company’s reputation. Efficient logistics and supply chains management are essential to ensure that products or services are delivered as promised. 4. Price CHAPTER 2: EXPLORING MODELS & FRAMEWORKS Early TQM Frameworks 1. Deming’s 14 Points W. Edwards Deming, a prominent quality guru, proposed his 14 points as a roadmap for achieving quality excellence. These points emphasize a shift from traditional inspection-based quality control to a more realistic approach that focuses on preventing defects & fostering continuous improvements. Deming advocated for the importance of systematic changes within organizations, including a focus on employee empowerment, process optimization & commitment to long-term improvement. 2. Juran’s 10 Steps Joseph M. Juran, another influential figure in quality management, presented his 10 steps as a structured approach to quality improvement. Its framework emphasizes a systematic process for identifying, analyzing & addressing quality problems. Juran’s approach emphasizes the importance of planning, control & continuous improvement through structured problem-solving methodologies.  3. Crosby’s 4 Absolutes & 14 Steps Philip B. Crosby, known for his emphasis on quality as conformance to requirements, defined the 4 Absolutes of Quality Management: Quality is conformance to requirements, Prevention of Defects, Zero Defects as a Performance Standard & Quality is measured in dollars, Crosby’s 14 Steps provide a practical guide for implementing quality principles within an organization, focusing on the importance of leadership commitment, employee involvement & a culture of continuous improvement. Focus Definition of Quality Senior Management Responsibility Deming - Employee - Reducing - Importance of Empowerment Variation strong - Process - Journey rather leadership Optimization than destination commitment Juran - Planning - Achieving - Fosters - Control fitness for use collaboration & - Meeting teamwork customer needs & expectation Crosby - Leadership - Conformance to - Communication commitment requirement of accountability - Employee Involvement The Author’s Early TQM Model 1. Customer/ Supplier Chain Store This model centered around the customer/supplier chain, recognizing the interconnectedness of organizations & their stakeholders. It emphasized understanding & meeting customer needs while managing relationships with suppliers to ensure consistent quality. 2. Surrounding Systems The model incorporated various systems including quality management systems, information systems & human resource management system to support & facilitate the customer/supplier chain. These systems provided the necessary infrastructure & processes for effective quality management. 3. Tools The model recognized the importance of utilizing various quality tools such as statistical process control, process mapping & root cause analysis to identify & address quality problems effectively. These tools provided the practical means for implementing quality initiatives & achieving continuous improvements. 4. Teams The model emphasized the role of teams in implementing quality initiatives. Cross-functional teams empowered to identify & solve quality problems, played a crucial role in driving improvement. This model recognized the power of  collective effort & the importance of collaboration in achieving quality excellence. Building A Strong Reputation & Competitive Advantage Optimizations that prioritize quality, reliability & customer satisfaction are well- positioned to build a strong reputation, achieve competitive advantage & enjoy long- term success in the marketplace. The Interconnectedness of Quality, Reliability & Customer Satisfaction These elements are interrelated & effective management in each area contributes to overall organizational success & customer satisfaction. 1. Quality – High quality leads to increased customer satisfaction & loyalty. 2. Reliability – Reliable products or services build trust & reduce customer dissatisfaction. 3. Customer Satisfaction – Satisfied customers are more likely to become repeat customers & recommended the brand to others. Quality, Reliability & Customer Satisfaction Quality, reliability & ability to consistently meet & exceed customer expectations are fundamental to building a strong reputation & achieving competitive advantage. Quality Meeting or exceeding customer expectations Reliability Consistent performance over time Customer The overall experience & perception of value Satisfaction Delighting Customers & Achieving Excellence Delighting customers goes beyond merely meeting their expectations; it involves exceeding them in ways that create a memorable & positive experience. 1. Customer Delight This refers to providing a level of service or product quality that surprises & pleases customers. 2. Reputation of Excellence Organizations that consistently delight their customers build a reputation of excellence. 3. Customer Loyalty Delighted customers are more likely to return & become loyal advocates for the brand. Reliability & meeting Customer Requirements Over Time Reliability is a key component of quality that pertains to a product or service’s long- term performance. A reliable product or service consistently performs as expected over its lifespan. 1. Consistency A reliable product or service consistently performs as expected over its lifespan. 2. Impact On Reputation Reliability influence customer satisfaction & loyalty. Brands known for their reliability often enjoy strong customer loyalty & positive word of mouth. 3. Management Practices Ensuring reliability involves rigorous testing, quality control processes & regular maintenance. CHAPTER 3: LEADERSHIP & COMMITMENT The TQM Approach 1. Comprehensive Approach TQM emphasizes a holistic view of quality, encompassing all aspects of an organization’s operations, from customer interactions to internal processes. This approach ensures that every activity contributes to the overall quality objective, fostering a culture of continuous improvement throughout the organization. 2. Strategic Overview TQM adapts a proactive strategy for quality by focusing on prevention rather than reactive problem-solving. By carefully planning & organizing processes, organizations can minimize errors, reduce waste & maintain high standards resulting in enhanced efficiency & customer satisfaction. 3. Mindset Change Implementing TQM often requires a cultural shift, demanding a re-evaluation of existing practices & a willingness to embrace new methodologies. Organizations may encounter resistance from individuals accustomed to traditional approaches, requiring effective communication & leadership to overcome these barriers & foster a culture of continuous improvement. Commitment & Policy 1. Top Management Responsibility The CEO or top leaders play a pivotal role in championing TQM by establishing a comprehensive quality management strategy that addresses customer needs, organizational capabilities, supplier quality, training & ongoing system improvement. 2. Middle Management Role  Middle Management translates top management’s commitment to actionable strategies & communicate this message throughout the organization. They ensure that the quality policy is understood & implemented at all levels, fostering alignment between organizational goals & quality objectives. Creating Or Changing The Culture 1. Vision Framework A strong vision framework guides the organization’s cultural shift, articulating its guiding philosophy, core values & purpose. This framework aligns efforts towards common goals & creates a shared understanding of the organization’s mission. 2. Effectiveness & Accountability TQM fosters a culture of internal accountability, encouraging individuals to take ownership of their roles & contributes to the organization’s success. This shift from external control to internal responsibility promotes a sense of ownership & commitment to quality. Vision & Strategy The leader’s vision provides direction and sets the tone for the organization. It should be accompanied by clear objectives, effective strategies & supporting plans that outline how the vision will be achieved. Critical Success Factors Identifying and focusing on critical success factors & core processes allows organizations to prioritize efforts & resources towards areas that have the most significant impact on achieving quality/goals. Management Structure & Employee Participation An appropriate management structure supports TQM implementation. Additionally, empowering employees through participation in decision-making processes fosters a culture of engagement & accountability. The EPDCA helix (Explore, Plan, Do, Check, Act) is a useful tool for continuous improvement. POSITIVE NEGATIVE Strength Weakness WITHIN INTERNAL (Capitalize) (Eliminate) CONTROL Opportunities Threats BEYOND EXTERNAL (Exploit) (Neutralize) CONTROL Oakland TQM Model The Oakland TQM Model outlines 4 key pillars: Planning, Performance, Process & People. This framework emphasizes a holistic approach, integrating quality management into all aspects of organizational operations: 4 Ps: 1. Planning Developing comprehensive plans that align with the organization’s quality objectives. 2. Performance Measuring & evaluating performance to ensure that quality standards are met. 3. Processes Streamlining & improving processes to enhance efficiency & effectiveness. 4. People Engaging & developing people to contribute to quality. Customer Focus The Oakland TQM Model also highlights the importance of Customer Focus, Commitment, Culture & Communications. These elements are essential for creating supportive environments that prioritize customer satisfaction & continuous improvement. 4C’s: 1. Commitment Ensuring sustained commitment to qualify from all levels. 2. Culture Fostering a culture that supports quality & continuous improvement 3. Communications Maintaining clear & effective communication channels to support quality initiatives. 4. Customer Focus 8 Leadership Roles 1. The quality advocate Articulates a clear vision for quality as a strategic imperative that supports the organization’s broader aims & objectives. Develops & implements strategies to maximize the contribution to the quality profession within the organization. 2. The stakeholder advocate Acts as the conscience in the organization, making intervention when necessary to ensure customer & stakeholder requirements are addressed. 3. The systems thinker  Looks across business functions & hierarchies to promote a holistic view of the organization & its requirements. 4. The fact-based think Promotes a culture of decision-making based on factual evidences & measurement of performance. 5. The quality planner Advocates the principles of planning for quality to prevent potential problems with product & service quality. 6. The quality coach Develops knowledge of quality principles & capabilities in quality tools, techniques & approaches throughout the organization. 7. The quality motivator Motivates & empowers others to take accountability for achieving & improving standards of performance. 8. The quality collaborate Works with all internal & external stakeholders to resolve issues associated with organization performance & delivery of quality products/services. Planning For Success Identify Quality Develop Action Allocate Objectives Plans Resources Monitor Progress Communicate Plans